Insurance Industry Expected To Oppose Proposed Rule Affecting Brokers in California
The Los Angeles Times on Monday examined lobbyists representing insurers in Sacramento and their expected response to a proposed rule that would affect insurance brokers in California (Lifsher, Los Angeles Times, 11/22). Insurance Commissioner John Garamendi (D) in October announced new regulations that would require insurance agents and brokers to reveal all financial incentives received from insurers and to find the "best available" policies for clients, among other provisions (California Healthline, 10/21).
According to the Times, insurers "have cause for concern" because Garamendi can implement the rules after a public comment period, provided that the Office of Administrative Law has no legal objections to them.
However, insurance industry officials and lobbyists are "plotting their tactical response" to the proposed rules and are expected to file objections, the Times reports. Specifically, insurance industry interests said they likely will try to narrow conflict-of-interest disclosure requirements and assert that the provision requiring brokers to find the best available insurance polices is "impractical," according to the Times (Los Angeles Times, 11/22).